More than half the daily crude production in the U.S. Gulf of Mexico (GoM) remained offline on July 16 in the wake of Hurricane Barry, the U.S. drilling regulator said, as most oil companies were re-staffing facilities to resume production.
The U.S. Bureau of Safety and Environmental Enforcement (BSEE) said 1.1 million barrels per day (MMbbl/d) of oil, or 58% of the region’s total, and 1.4 billion cubic feet per day (Bcf/d) of natural gas output remained shut.
BSEE also said 171 production platforms, or 26%, have not resumed operating, down from 267 platforms on July 15.
Since July 10, 7.8 MMbbl of oil, or nearly two-thirds of the United States daily oil production, has been lost due to Barry, which has become a post-tropical cyclone and was moving over eastern Missouri on July 16.
Phillips 66 continued to restart its 253,600-bbl/d Alliance, Louisiana, refinery, said people familiar with the matter. The plant was shut on July 12 under a mandatory evacuation order due to the threat of flooding.
Natural gas output in the Lower 48 states, meanwhile, has increased every day since touching a seven-week low of 87.8 Bcf/d on July 11 because of Barry, rising to 88.3 Bcf/d on July 15, according to data provider Refinitiv. That compares with an all-time high of 91.1 Bcf/d on July 5.
The amount of gas flowing to the nation’s LNG export terminals was expected to rise from a one-month low of 5.1 Bcf/d on July 11 to a near record high 6.2 Bcf/d on July 16 as units at several new terminals start to enter service.
Most of the LNG reduction was at Cheniere Energy Inc.’s Sabine Pass export terminal in Louisiana, which fell to a 13-week low of 2.9 Bcf/d on July 11. The amount of gas expected to flow to Sabine was up to 3.3 Bcf/d on July 6, according to Refinitiv.
Officials at Cheniere declined to comment.
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